Can We Keep Manufacturing Without Our Factory License While It's Still Processing?

Dear All,

Ours is a manufacturing factory employing around 180 employees. We have obtained all the licenses and registration certificates essential for running the factory except the Factory License. We have applied for the Factory License for 250 employees and paid the requisite fees. However, due to some changes in the approved plan of the factory, we have not yet received the factory license. The Industrial Safety and Health department has issued us a certificate regarding the same and mentioned that the license is in process. Based on this, we have been manufacturing for the last 6 months.

I would like to inquire whether we can continue to produce goods even though we have not yet received the factory license. We are confident that we will receive it soon as we have completed all the necessary formalities to obtain the license.

Regards,
Parag

No worries. As rightly mentioned by Mr. Dhingra, the license is deemed to have been granted if no objections are received within 2 months from the date of submission. However, you need to preserve the challan copy (for the license fees) and the acknowledgment copy of the Form 3 (Application for License/Renewal of License of a Factory) with you so that you have proof regarding the timely submission and payment of fees.

I know of some small and medium-sized establishments in places like Nagpur, Aurangabad, Daman, Vapi, etc., where the factory license has not been granted by the respective Inspector of Factories for some years as these establishments have not agreed to the inspector's demand (which is in 6 digits) and have stayed adamant in line with their company's ethics policy (a few of them also have the "anti-bribery and anti-corruption" policy guidelines with them). In such a scenario, the challan copy indicating the payment of the factory license fees and the acknowledgment copy of the application (Form 3) for submission have been maintained by these victimized establishments. With this, they have been operating for quite a few years now. (One such establishment in Nagpur has not been granted the Factory license since 2011, as I have been informed).

However, it's also important that you try to adhere to the requirements under the Factories Act, regardless of the fact that the original license copy has not been handed to you by the respective body.

Regards,
A.B.